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The Reserve Bank on Thursday directed banks to implement the 1 per cent interest subsidy scheme on housing loans up to Rs 15 lakh announced in the Budget with immediate effect.
To help increase the demand for low-cost housing, the Finance Minister, Mr Pranab Mukherjee, liberalised the existing scheme of 1 per cent interest subvention on housing loans up to Rs 15 lakh, where the cost of house does not exceed Rs 25 lakh.
The RBI directed banks to issue necessary instructions to the controlling offices and branch offices to ensure that these guidelines are implemented immediately, it said.
The other terms and conditions of the housing subvention scheme remain unchanged, it added.
The implementation of the subvention scheme comes close on the heels of the country's largest bank SBI's withdrawal of teaser rates following a hike in its lending rate by 25 basis points, making loans across segments costlier.
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